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January 15, 2019 – The Court hearing the Aegean Marine Petroleum case issued an order [Docket No. 291] authorizing the restructuring support agreement entered into amongst Mercuria Energy Group Limited (“Mercuria”), the Debtors’ Official Committee of Unsecured Creditors, American Express Travel Related Services Company, and certain holders of the Company’s unsecured convertible notes. (the “RSA”) [Docket No. 223].
In a press release announcing the RSA, the Debtors’ noted, “Under the terms of the Court-approved RSA, Mercuria will receive 100% of the common equity of the reorganized Company. Mercuria will also fund $40 million in cash on account of general unsecured creditor recoveries at the Company and backstop a $15 million loan to a trust to fund litigation (the ‘Litigation Loan Trust). General unsecured creditors at the parent will receive 100% of the initial proceeds from litigation claims (after repayment of the Litigation Trust Loan plus $3 million), until they receive payment in full on account of their allowed claims. General unsecured creditors at the subsidiaries will receive full recoveries in the normal course, under the agreement. Holders of the Company’s pre-prepetition common equity will receive 100% of the residual interests in the litigation claims once general unsecured creditors at the parent have received payment in full. Pursuant to reasonable and achievable milestones, the Company will implement its restructuring plan, and expects to emerge from Chapter 11 around the end of the first quarter of 2019.”
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